Jet2.com-owner secures £300m in government funding
Dart Group – the listed company behind Jet2.com – has been confirmed as an eligible issuer for the Bank of England Covid Corporate Financing Facility.
In response, the organisation has put in place a £300 million commercial paper programme to facilitate issuance under the scheme.
The cash will be used to provide standby liquidity, should that be required, and is currently unutilised, Dart said.
The CCFF is designed to support liquidity among larger businesses who are capable of demonstrating that they make a material contribution to the UK economy and are able to display sound financial health, equivalent to an investment grade rating, prior to the economic shock caused by the Covid-19 pandemic.
Philip Meeson, executive chairman, commented: “The group is grateful to both the Bank of England and HM Treasury for the provision of the CCFF.
Together with the fully drawn revolving credit facility of £100 million, these two sources of additional liquidity will provide the group with headroom to deal with the present disruption and associated working capital requirements, ensuring we can continue to support our great business through this challenging period.”
Jet2 has currently suspended flights until June 17th, but is hoping to offer summer breaks this year.
Meeson added: “Though still early, we continue to be encouraged by the volume of our customer bookings for summer 2021 and their associated pricing.
“Based on this limited visibility, we are confident that once normality returns, our customers will be determined to enjoy the wonderful experience of a well-deserved Jet2 holiday and that Jet2.com and Jet2holidays will continue to have a thriving future, taking millions of UK holidaymakers annually, to the Mediterranean, the Canary Islands and to European Leisure Cities.”